The last time the city’s Community Development Department updated its fee schedule for applications, George W. Bush was president, “Lord of the Rings: The Return of the King” was topping the box office and the average price of gas nationwide was $1.72.
It was time for a change.
The established fee schedule for the review processes associated with Community Development applications is intended to cover the costs and expenses associated with examining, processing, conducting field inspections, publishing legal notices and meeting with developer and builder applicants, a city report states. These fees were last updated in August 2003. An attempt was made to update the fees in 2008 but the idea was scrapped due to the Great Recession.
During its May 14 meeting, the Sedona City Council was given a review of the updated fee schedule. No action was requested at this time but council is expected to approve it later this year. And while no vote was taken, they all agreed that the update was a good one.
About a year ago, Assistant Director of Community Development Warren Campbell sought to update these fees. The city’s Finance Department provided support in conducting a cost of service study to quantify the staff hours and costs associated with each application/review, the report states.
Average time spent on various applications/ processes was identified and associated personnel costs were calculated based on a percentage, typically 80%, of the maximum hourly rate from the current salary schedule plus the average fringe benefit rate for each position involved. Program-specific overhead costs
include anything from a Major Community Plan Amendment to something as simple as getting a permit to own chickens or bees or put up a temporary sign.
Councilman Bill Chisholm asked why the city is not recouping the full amount of the cost associated with these fees.
“I am not aware of a single community that captures 100% of their true costs to administer their applications,” Campbell said.
On those lines, Vice Mayor John Martinez said he’s all in favor of cost recovery and pointed out that 90% of the permits listed have a higher actual cost than what will be charged to the applicant. But he said he realize that few cities recoup the costs incurred to provide services to its citizens.
“I did not ask other cities what percent of cost recovery they were achieving,” Campbell said. “I don’t even know how many go to this level of detail. Some of them just do comparisons.”
City Manager Justin Clifton added, “We want to be cognizant of the cost of doing business. We’ve created a lot of the standards that need to be administered. It can be perceived as a double whammy to say that we are going to have strict standards and then say we want you to pay for them.”
In regard to the current fee structure for permits, Campbell said the department may receive two complaints a month, mostly on the residential side of those looking to install fences or other basic home improvements.
Councilwoman Jessica Williamson said the city exists to provide services to the residents of the community and charge taxes to provide those services.
“We don’t exist to make money,” she said. “I think moving toward a reasonable cost recovery makes sense.”
Ron Eland can be reached at 282-7795, ext. 122 or by email at reland@larsonnewspapers.com
